BY ANDREW GIOVINAZZI
July 2, 2024
Yo Pit Crazies,
Tesla Inc (Ticker: TSLA) is on a roll. If I had some room in my OP portfolio i might add it but I think I might add it anyway. I bought more shares below $200 this week and I think TSLA might surprise people.
Let’s see some of the things Elon Musk is doing:
Built a reusable rocket company to make space flight 10x cheaper
Built efficient solar energy storage
Built a cheap satellite network for internet
Building cheap AI robots
Building cheap cars electric cars
Made a social media company profitable by using 85% less employees
I am sure more to this but this is a good summary. Right now TSLA is the only way to get long Elon Musk. While some of the fashion has left his empire it is still formidable.
Plus the stock is down in 2024.
Plus there is the magic two letters
Cheap AI Robots!
Every once in a while, Jen-Hsun Huang of Nvidia Inc (Ticker: NVDA) says nice things about TSLA robots and the stock goes up a bunch. I think the second act in NVDA will be robots and lots of them.
That will be the tricky part for TSLA. Like Apple Inc (Ticker: AAPL) moving from music to the iphone, TSLA will move from cars to robots or basically everything being full self drive (FSD), cars and robots.
There will be bumps.
1 year TSLA chart with implied vol in red on the bottom
Bumps mean a less upward path. I am looking at selling a couple of put spreads in TSLA below $200. Eventually use the premium collected to buy some long term calls. The candles in the chart are hoping so expect more upside moves.
To Your Trading Success,
-AG
Andrew Giovinazzi
30-Year Trading Pro
See what's hot at option pit
CAPITOL GAINS: SMR Aug16 7 call closed for a 150% gain
DELTA STRIKE: VLY Mar15 8 puts closed for a 88% gain
PFE May17 26 calls closed for a 66% win
OP MENTORING: SPY Mar22/19 510 put calendars and 520 calls for 6.4% gain
OPTION SHOPPER: ERX Mar28 65 calls closed for a 90% gain
Events make the liquidity providers raise prices for the same amount of time
How do I know this? I was one for 15 years, Mark 10 years and Licia for 15 years. That is 40 years and 20 million option contracts. Also, players will wait to place trades while an event is in play. Traders would rather ride a sure wave than place a big bet prior.
The liquidity provider will just pump up the volatility in the options to overcome the daily decay. Trade 1 Greek for another, Theta and Vega. That is just time for volatility.
Look for my Greek Exposition in Option Pit University coming soon.
If the PCE number is just in line post-debate, SPX will fly as the market is waiting for a reason to go higher. Hard to imagine there will be any surprise from the two candidates but that is why the VIX has a bid!
To Your Trading Success,
AG
The Gulf of Maine and the shoreline offer 1000s of fishing spots. An almost unlimited supply of places to go. Right now the stock market, with 1000’s of names to trade, has only one place to go.
That stock is Nvidia Inc. (Ticker: NVDA). On a low volume Tuesday in the June heat, NVDA managed a day where the fund manager had a chance to buy the stock not at all time highs. So they all jumped in and the performance lifted all high quality tech.
Yo Pit Crazies,
It is Voz Free Friday this week. Check out Voz and Mark as the dynamic duo of trading on the close every day in Trade to Close.
My close Tuesday was a bit different, a buddy wanted to go Striper fishing so I did this: